Lin Shengzhi, CEO of Shanghai Chamate Company Ltd., has revealed that Chamate plans to open another 30 retail tea dining outlets in 2011 and the central China and west China will be the next key development regions.
He also expects Chamate to be publicly listed within three years.
Lin said that Chamate's sales in 2010 reached about CNY500 million, a year-on-year increase of 30%. It has already had several rounds of financing and no new financing plan is expected. Currently, Chamate has 99 stores in mainland China.
As for its listing plan, Lin said because the cost for the catering industry keeps rising, its listing plan will depend on the operating stability in the future. However, Chamate will definitely be listed within the next three years.
At present, there are two major business development directions for Chamate: one is the store expansion, and now Chamate needs to strengthen the expansion in the central and west China areas. Generally speaking, new stores basically can make profit in three months and recover the investment in 30 months.
The other one is in the derivative products, mainly the tea sales business. Chamate established a subsidiary, Shanghai Yipin Trade Company Ltd., in 2008, specializing in packaged tea sales.